News Release
Quantum BioPharma Ltd. Alleges Market Manipulation, Files Lawsuit, unbuzzed Continues To Gain Traction
QNTM
Quantum BioPharma Ltd. (NASDAQ: QNTM) (CSE: QNTM) continues to make strides in both biopharmaceutical innovation and its functional wellness product line. A biopharmaceutical company focused on the treatment of neurodegenerative and metabolic disorders, Quantum BioPharma’s recent efforts in launching a wellness beverage, unbuzzd, highlight a strategy to diversify and expand revenue streams beyond its core drug development. Expanding Market Reach with unbuzzd On October 7, 2024, Quantum BioPharma’s subsidiary, Celly Nutrition Corp., secured a Master Distribution Agreement with FUSION Consulting Group. This agreement grants unbuzzd, the company's innovative beverage designed to support the body in metabolizing alcohol, access to prominent retailers throughout Puerto Rico, the Caribbean, and parts of Central and South America. Retailers such as Walmart, Walgreens, CVS, and Costco will soon offer unbuzzd, helping it penetrate vacation-heavy markets where alcohol consumption is a common part of the experience. John Duffy, CEO of Celly Nutrition, emphasized the significance of this partnership: “Our collaboration with FUSION allows us to reach a broader audience and help consumers make healthier choices when it comes to alcohol consumption.” Unbuzzd offers a unique value proposition by helping to expedite the body's alcohol metabolism process, promoting clarity and faster recovery. FUSION’s distribution expertise, which includes previous success with brands like CELSIUS and SHINE Water, further enhances the product’s growth prospects in new markets. Legal Action: Alleged Market Manipulation In addition to its expanding product portfolio, Quantum BioPharma has recently taken legal action to address what it claims is a multi-year market manipulation scheme. On October 20, 2024, the company filed a lawsuit in the United States District Court for the Southern District of New York, alleging that CIBC World Markets, RBC Dominion Securities, and other entities engaged in stock price manipulation, commonly referred to as "spoofing." This legal action seeks damages in excess of $700 million, a figure that reflects the significant harm Quantum BioPharma believes it suffered as a result of these activities. The lawsuit alleges that between January 1, 2020, and August 15, 2024, these defendants repeatedly manipulated the share price of Quantum BioPharma, contributing to a dramatic drop in its stock value. CEO John Duffy described this legal step as a necessary measure to protect the company’s interests and its shareholders: “The market manipulation we’ve experienced has had severe financial consequences for the company and our investors. We are pursuing this case with full confidence in the strength of the evidence.” Law firms Christian Attar and Freedman Normand Friedland LLP are representing Quantum BioPharma on a contingency basis, ensuring that the company does not bear immediate financial pressure for legal costs. They have conducted extensive investigations that they believe substantiate claims of substantial market manipulation, affecting both the company and its retail investors. "In the 21 years our team has been prosecuting market manipulation cases against Wall Street, I believe this could be one of the top 5 biggest spoofing/market manipulation cases we have handled," stated James Wes Christian, highlighting the potential damages in excess of $700 million USD due to the alleged manipulative practices. Key Milestones for the Future Beyond the current legal developments and the market expansion of unbuzzd, Quantum BioPharma is advancing its core biopharma pipeline. The company’s lead compound, Lucid-MS, is designed to address myelin degradation in multiple sclerosis. In August 2024, Quantum BioPharma announced that it had received ethics approval in Australia to commence Phase 1 clinical trials for Lucid-MS. This milestone marks a critical step forward in the development of a potentially groundbreaking treatment for this challenging neurodegenerative disorder. Quantum BioPharma’s focus on long-term innovation and near-term revenue generation is reflected in its diversified business model. By maintaining a 25.71% stake in Celly Nutrition and earning royalties from unbuzzd sales, the company is positioned to benefit financially while continuing its pioneering work in the biopharmaceutical sector. Additionally, Quantum BioPharma retains 100% of the rights to develop a pharmaceutical version of unbuzzd specifically for medical use, offering further growth potential in the future. Conclusion Quantum BioPharma Ltd. (NASDAQ: QNTM) (CSE: QNTM) is demonstrating solid progress on multiple fronts. With the successful launch and distribution agreement for unbuzzd, legal efforts to address past market manipulation, and key milestones in its drug development pipeline, QNTM’s multifaceted strategy positions it as a compelling stock to monitor. While the company’s biopharma ambitions, particularly with Lucid-MS, hold long-term promise, the expansion of unbuzzd into new markets could drive more immediate revenue growth, making QNTM a stock with strong potential in both the wellness and biopharmaceutical industries. Disclaimers: RazorPitch Inc. "RazorPitch" is not operated by a licensed broker, a dealer, or a registered investment adviser. This content is for informational purposes only and is not intended to be investment advice. The Private Securities Litigation Reform Act of 1995 provides investors a safe harbor in regard to forward-looking statements. 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October 21, 2024 11:55 AM Eastern Daylight Time
